Question

Question 10 of 10

3 Points
Why might a business owner prefer to raise capital through a loan rather than
through selling shares to an investor?
O
A. Acquiring a loan allows the owner to retain full ownership of the
business instead of sharing profits with investors.
B. Having a business loan validates the business in the eyes of the
public in a greater way than receiving capital from investors does.
) C. If investors become involved, the business owner has to prepare
accurate and full reports rather than present only the information
that is beneficial to his business.
O
D. Selling shares to an investor to avoid loans is an example of
insider trading, which is illegal.

Answer 1

A

Step-by-step explanation:

With a loan, all the owner has to do is repay the principle and interest. Shareholders have a say in how the business is run by voting during annual General meeting